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The bottom line: If you want to apply for a joint loan or don’t have the best credit, Prosper is a good lender. You might, however, be able to find a better deal elsewhere given its extensive list of fees and onerous eligibility requirements.
Prosper personal loan amounts and interest rates
Loan amounts offered by Prosper range from $2,000 to $40,000, and customers can apply for loans in all 50 states and Washington, DC.
You will receive an APR between 6. 99% to 35. 99% of loans are funded through Prosper, subject to your creditworthiness, ability to repay the loan, and other factors. This is comparable to similar companies APR ranges. For instance, Avants APR range is 9. 95% to 35. 95%, and LendingClubs range is 8. 05% to 36. 00%. If your co-borrower’s credit score is lower than yours and they qualify for a lower rate, you can apply together.
Pros and cons of Prosper personal loans
Today’s personal loan rates
Prosper provides unsecured personal loans through WebBank (Member FDIC). A collateral deposit, such as a house or car, is not necessary to obtain an unsecured personal loan. A personal loan can be used for a number of things.
You have a choice of borrowing money for three or five years. The majority of Prosper loans are approved in a single day, but depending on your bank, it could take one to three business days to see the money in your account.
However, a Prosper investor must decide to fund your loan in order for you to receive your money. A peer-to-peer lending platform called Prosper links borrowers and investors.
Investors typically agree to offer funding before the approval process is finished (in three days or less), according to the company’s website. To invest in your loans, however, they have up to two weeks. After 14 days, if your loan has not received at least 70% funding, the company will reject your application.
With a Prosper loan, you might pay a variety of fees, such as an origination fee, a check payment fee, a late fee, and an insufficient funds fee. Nevertheless, if you pay off your loan early, you won’t have to pay a prepayment penalty.
To contact customer support, call Monday through Friday, 9:00 a. m. to 8:00 p. m. ET, or on Saturday from 9:00 a. m. to 5:30 p. m. ET. You can also send an email or paper mail.
Youll need to meet the following requirements to apply:
What credit score do you need?
To be eligible for a Prosper personal loan, you must have a credit score of at least 640. Remember that you are more likely to receive a favorable APR the higher your credit score.
You can find your credit report for free on annualcreditreport.com from any of the three major credit bureaus weekly through April 20, 2022. While this report wont give you your credit score, it will show you information about your credit and payment history, which lenders use to decide whether to give you a loan. Reviewing your credit report can help you know what you need to improve.
Your credit score is free to access and can be found on your credit card statement or online account. Additionally, you can purchase it from a credit reporting company.
When you check rates through Prosper, only a soft credit inquiry is made, so your credit score is unaffected.
Prosper will conduct a hard credit inquiry after you accept an offer and formally request a loan, which will probably affect your credit score. A hard inquiry may lower your credit score because it provides a lender with a thorough view of your credit history.
The Better Business Bureau, a non-profit organization dedicated to consumer protection and trust, has accredited Prosper and given it an A+ rating. The BBB rates businesses based on their responses to consumer complaints, their advertising sincerity, and their transparency with regard to business practices.
Even though Prosper has an excellent BBB rating, that doesn’t guarantee that your interactions with the company will be positive. Be sure to read testimonials and inquire about friends’ and family members’ experiences with the business.
In 2019, the SEC accused Prosper of miscalculating returns and misleading investors. The SEC claimed that exaggerated annualized net returns caused investors to make more investments. In the settlement, Prosper paid $3 million.
Even though Prosper has a stellar BBB rating, you might want to look elsewhere if the company’s 2019 controversy offends you. How Prosper personal loans compare.
Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Editors Rating
Prospers interest rates are comparable to those provided by comparable lenders, despite the fact that rates are specific to your situation. Heres how Prosper compares to similar companies:
Despite not charging an origination fee, Avant does charge an administration fee of up to 4 75%.
Both Prosper and LendingClub will charge you an origination fee. Prospers origination fee varies between 2. 41% to 5% of the total loan amount, while LendingClub charges a fee of 1% to 6%. This fee will be subtracted from your loan proceeds and added to your overall APR.
Prosper may provide your funds more quickly than LendingClub. Your money will typically be sent to you by Prosper in one to three days, whereas LendingClub may take two to four business days. However, keep in mind that until they have an investor to support your loan, Prosper won’t send you any money.
LendingClubs requires an unknown credit score, while Prosper has a minimum credit score requirement of 640. If your credit score is below 640, you might choose to switch to LendingClub or add a co-borrower with Prosper.
The minimum credit score required by Prosper is 640, while the majority of Avants’ clients have scores between 600 and 700. Both businesses provide loans to borrowers with fair credit, but if your score is at the lower end of the “fair” range, Avant may be a better option for you.
For borrowers, Avant has a mobile app while Prosper does not. Therefore, you might think about selecting Avant if you want to manage your personal loans while on the go.
Note from the Editor: No card issuer has reviewed, approved, or otherwise endorsed any of the opinions, analyses, reviews, or recommendations contained in this article. Read our editorial standards.
Please be aware that while the above offers were correct at the time of publication, they are always subject to change and may now no longer be available.
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Is it hard to get a loan through Prosper?
Borrowers with fair credit scores who want to take out a small loan should use Prosper. This is because credit requirements are low, with loans starting at just $2,000 and a minimum credit score of 600. Additionally, even though the business’s maximum APR is high at nearly 36%, the average rate from January to May 2021 was only 16. 37%.
How do I know if Prosper approved my loan?
By logging into your Prosper account and visiting your Account Overview page, you can quickly determine the status of your application at any time. This page will show you, among other things, any documents still needed to finish the verification process as well as the proportion of investor funds committed, among other things. Was this helpful?.
How long does it take for a Prosper loan to be funded?
Your bank may require 1-3 business days for the funds to appear in your account.
How long does Prosper take to approve or deny a loan?
The majority of Prosper loans are approved in a single day, but depending on your bank, it could take one to three business days to see the money in your account.